Courtyard by Marriott, Winston-Salem, NC
Courtyard by Marriott
We acquired the Center City West Parking Deck, a three level parking deck consisting of 730 spaces located at 650 West Fourth Street, from the City of Winston-Salem in 2016. The acquisition came with city imposed conditions, the first of which was to develop $20,000,000 of real estate within five years of purchase, and secondly, such development be located within 2,000 feet of the parking deck. We acquired the adjacent parcel, 640 West Fourth Street, as an office development site that would assist in meeting the development requirements of the parking deck acquisition.
Due to increasing office vacancy and declining office rents in Winston-Salem, it became obvious that existing market rents could not support new office construction. The development challenge was to identify a product type that provided reasonable returns for investors, generated additional need for the existing parking deck, and ultimately satisfied most, if not all, of the imposed development conditions set forth by the City of Winston-Salem.
After almost a year of negotiations, we were able to secure an approval from Marriott International, Inc., to develop a Courtyard by Marriott. Construction has commenced and completion of the hotel is anticipated in the third quarter of 2019.